Legal and Soc Exam 2
12.Q.7 Al contracted to sell his house to Bev. Subsequently, they both changed their minds and agreed to cancel the contract. The contract between Al and Bev is discharged by: a. accord and satisfaction. b. full performance. c. novation. d. agreement.
d. agreement.
10.Q.8 John owns a thoroughbred horse named Prince Charming that just ran in the Kentucky Derby. Prince Charming came in last, much to John's frustration and embarrassment. John exclaims in a loud voice, "I'm selling that horse to the first person who hands me $100!" John has a. made an acceptance to the first person who can produce $100. b. made an offer to anyone within hearing distance and will be bound by his offer to the first person who produces $100. c. made a firm offer and will be bound by his offer for a reasonable period of time. d. not made an offer because under the circumstances a reasonable person would not conclude that John had intent to make an offer.
d. not made an offer because under the circumstances a reasonable person would not conclude that John had intent to make an offer.
Raymond agrees to transfer an easement right to Sandra for $1,000. This contract is within the statute of frauds and therefore needs to be in writing to be enforceable. a. true b. false
a. true
10.CYU.9 What elements are required for courts to apply the doctrine of promissory estoppel? Choose 3 answers. a. Enforcement of the promise is necessary to avoid injustice to the promisee. b. There must have been consideration given with the promise. c. The promise must be definite and relied upon. d. There was a detrimental result from reliance on the promise.
Enforcement of the promise is necessary to avoid injustice to the promisee. c. The promise must be definite and relied upon. d. There was a detrimental result from reliance on the promise.
14.Q.5 Occurs when the secured party takes back collateral because the debtor has defaulted
Repossession
14.6 What must a plaintiff prove in an express warranty case? a. Buyer reliance on the seller's promises b. A disclaimer c. The seller's opinion about the product d. The buyer's opinion about the product
a. Buyer reliance on the seller's promises
14.3 How do parties determine which is the appropriate law for a mixed contract? Choose 2 answer choices. a. Common law is appropriate for some mixed contracts. b. Common law applies to all mixed contracts. c. The predominant-factor test dictates the proper choice of law. d. The UCC applies to all mixed contracts.
a. Common law is appropriate for some mixed contracts. c. The predominant-factor test dictates the proper choice of law.
10.1 In what situations would a court be likely to award a quasi-contract? Choose 2 answer choices. a. If the defendant was unjustly enriched and played a part in deceiving the plaintiff b. When the party provided the services for unwilling recipients c. If the defendant did not know the plaintiff would expect to be paid for the services d. When the unjust enrichment is a relatively insignificant amount of money
a. If the defendant was unjustly enriched and played a part in deceiving the plaintiff d. When the unjust enrichment is a relatively insignificant amount of money
12.CYU.2 What is the difference between legal remedies and equitable remedies for breach of contract? a. Legal remedies are monetary while equitable remedies are non-monetary. b. Equitable remedies are monetary, while legal remedies are non-monetary. c. Equitable remedies are only available in quasi-contract, while legal remedies are available in all other types of contracts. d. Legal remedies must be applied by the courts, while equitable remedies can be written into the contract.
a. Legal remedies are monetary while equitable remedies are non-monetary.
10.CYU.3 What factors are used to judge if consideration is adequate to ensure a fair bargain? Choose 2 answers. a. Promises must be made with voluntary consent. b. Consideration must be a promise to pay money. c. Items or promises exchanged must be of nearly equal value. d. Promises exchanged may not be a preexisting duty.
a. Promises must be made with voluntary consent. d. Promises exchanged may not be a preexisting duty.
What are the elements of consideration? Choose 2 answer choices. a. an exchange to which the parties agree b. a preexisting duty c. something of value from each party d. past consideration
a. an exchange to which the parties agree c. something of value from each party
11.CYU.6 What types of contracts violate public policy? Choose 3 answers. a. employment contracts that forbid membership in a union b. a candidate for public office paying his competitor to retire c. conducting trade with a country that is an enemy to the United States d. a contract to allow a political candidate exclusive use of billboards you own
a. employment contracts that forbid membership in a union b. a candidate for public office paying his competitor to retire c. conducting trade with a country that is an enemy to the United States
12.Q.4 M & E contracted to sell 500 music stands to Coda, Inc. M & E shipped the stands in accordance with the agreement. Coda paid for the stands as promised. The contract between M & E and Coda is discharged by: a. full performance b. accord and satisfaction c. rescission d. agreement
a. full performance
11.CYU.2 What factors may cause a person to lack contractual capacity? Choose 3 answers. a. severe intoxication b. being under the age of majority (usually 18) c. being an emancipated minor d. mental incompetence
a. severe intoxication b. being under the age of majority (usually 18) d. mental incompetence
11.Q.5 Rest Well Hotel orally ordered 1,000 blankets monogrammed with its initials, RWH, from TriColor Textiles. TriColor had just finished monogramming the blankets when Rest Well called and canceled the order. TriColor will be able to enforce the agreement even though there was no writing. a. true b. false
a. true
12.8 What are the differences between legal and equitable remedies? Choose 2 answer choices. a. Both attempt to reform the contract. b. One requires actions instead of damages. c. One attempts to assist one party and penalize or restrict the other party. d. One is monetary.
b. One requires actions instead of damages. d. One is monetary.
11.5 What is an exception to the statute of frauds? a. Collateral Promises b. Promissory Estoppel c. Contracts dealing with land d. Contracts under the UCC
b. Promissory Estoppel
11.2 Samuel has mental competency issues. Samuel entered into a contract with Beth, but now Samuel is petitioning the court to terminate the contract. What options does the court have in ruling in the case? Choose 2 answer choices. a. The contract is voidable if a court has previously determined Samuel to be mentally incompetent. b. The contract is void if Samuel has been previously determined to be mentally incompetent. c. The contract is void if Samuel was incompetent at the time the contract was formed. d. The contract is voidable if Samuel was incompetent at the time the contract was formed.
b. The contract is void if Samuel has been previously determined to be mentally incompetent. d. The contract is voidable if Samuel was incompetent at the time the contract was formed.
10.Q.7 Madison purchases several 50-pound bags of mulch at the local gardening store. An employee carries the bags of mulch to Madison's truck and loads them into the back for her. Will Article 2 of the UCC govern the contract in this situation? a. No, this is a mixed contract because Madison is paying for both goods and labor. b. Yes, because the primary purpose of this contract is the sale of goods. c. No, this is an express contract because both parties explicitly state their intentions. d. Yes, because Article 2 of the UCC governs all bilateral contracts.
b. Yes, because the primary purpose of this contract is the sale of goods.
12.CYU.1 Which of the following is an equitable remedy for breach of contract? a. compensatory damages for having to hire extra help to correct nonconforming goods b. an order for specific performance c. punitive damages when a seller has repeatedly shipped unsafe goods d. payment of the cost of cover for items not delivered on time
b. an order for specific performance
12.Q.8 Dr. Gonzalez ordered specialized surgical equipment from Physician's Supply Co., but his order was not delivered by the agreed date. Gonzalez is under no obligation to minimize damages since the contract was breached by Physician's Supply, not Gonzalez. a. true b. false
b. false
14.CYU.7 In many states, a person must be in what position to have standing to sue for the breach of a product's implied warranty? a. The buyer must have inspected the product at the time of sale. b. The buyer must still have the receipt for the product. c. The buyer must be in privity of contract with the defendant. d. The buyer must have received a written warranty.
c. The buyer must be in privity of contract with the defendant.
10.Q.3 The basic distinction between an executory contract and an executed contract is that a. one is legal, the other is not b. one is enforceable, the other is not c. all parties have fulfilled their obligations in an executed contract d. Only one promise is involved in an executory contract
c. all parties have fulfilled their obligations in an executed contract
12.Q.2 Carlos is hired to paint a house for $700. Before he starts, the woman who hired Carlos tells him she does not want the job done after all. Carlos finds another house-painting job that afternoon, but it pays only $500. If Carlos sues the woman for damages and is awarded $200, that amount is an example of a. consequential damages. b. incidental damages. c. direct damages. d. nominal damages.
c. direct damages.
11.1 Which type of lack of capacity is easiest to prove? a. Intoxication b. Mental incompetence c. Contracting for necessities d. Minor status
d. Minor status
14.Q.7 Implied warranties are created by
the UCC itself.
11.Q.8 Which of the following oral contracts may be enforceable? A. Nathan owes $1,000 in back rent to his landlord. Miranda tells Nathan not to worry about it, she'll pay his debt for him. B. Kenny orally agrees to purchase 5,000 pencils that the ABC Pencil Company stamps with the words "Kenny is the Greatest!" C. Mrs. Washington calls the corner grocery and places an order for a loaf of bread, a gallon of milk, and a pound of hamburger to be delivered to her. Ten minutes later, before the store has a chance to put together her items, she calls to cancel the order. D. All of these are correct.
B. Kenny orally agrees to purchase 5,000 pencils that the ABC Pencil Company stamps with the words "Kenny is the Greatest!"
14.Q.1 At her neighbor's garage sale, Constance buys a vanity dressing table from her neighbor, Carlos, for $160. Constance purchased the vanity table for her own personal use, without any knowledge that Carlos had signed a security agreement giving All Purpose Furniture, Inc. a security interest in the vanity table. All Purpose Furniture did not file a financing statement. Constance does not know that Carlos is still paying off the purchase money security interest and owes All Purpose Furniture, Inc. $400. Under these circumstances
Constance takes the vanity table free of All Purpose's security interest because she is a buyer of consumer goods.
14.CYU.6 Which of the following implied warranties means the warranty arose from practices used in the industry for the product? a. implied warranty from prior dealings or trade custom b. implied warranty of merchantability c. implied warranty of title d. implied warranty of fitness for a particular purpose
a. implied warranty from prior dealings or trade custom
14.CYU.2 An example of unsecured credit is a: a. private student loan. b. car loan. c. mortgage. d. business loan to buy a piece of equipment.
a. private student loan.
12.CYU.8 What is the term for when a party to a contract performs his duties exactly according to the terms of the contract? a. strict performance b. substantial performance c. perfect performance d. specific performance
a. strict performance
12.Q.3 The legal right to sue for a breach of contract is subject to a statute of limitations. a. true b. false
a. true
10.3 In general, which of these contract terms is NOT required to meet the requirement of definiteness? a. The time of payment b. Acceptance c. The subject matter of the contract d. The parties involved
b. Acceptance
14.Q.8 Article 9 of the UCC only applies to goods and does not include intangibles such ast stocks, bonds, or bills of lading
b. false
11.Q.9 A contract most likely will be declared unconscionable if a. it is signed by a minor for an item of luxury b. it is oppressive and one-sided c. it allows for an extremely high rate of interest to be charged d. it contains a cancellation clause
b. it is oppressive and one-sided
12.CYU.3 What is the principle that is applied to determine how much compensation a party receives in a quasi-contract settlement? a. de facto justification b. quantum meruit c. quasi benefit d. bona fide reliance
b. quantum meruit
11.CYU.4 A contract for an illegal purpose is: a. voidable. b. void. c. enforceable as a quasi-contract. d. dischargeable.
b. void.
11.CYU.1 What is the term for the legal ability to enter into a binding contract? a. emancipation b. mental competence c. contractual capacity d. legal capability
c. contractual capacity
14.9 If a consumer falls when a step on a new ladder breaks, what warranty could apply? a. implied warranty of fitness for a particular purpose b. express warranty c. implied warranty of merchantability d. implied warranties implied from prior dealings or trade custom
c. implied warranty of merchantability
14.Q.9 A PMSI in consumer goods perfects automatically, without filing a. true b. false
a. true
14.2 The Uniform Commercial Code applies to what types of contract? a. Contracts for goods over $500 b. Contracts for leasing c. Contracts for services over $500 d. Contracts for real estate
a. Contracts for goods over $500
11.CYU.8 What type of contract is created by an agreement that is oral when it is required by the Statute of Frauds to be in writing? a. void b. voidable c. fraudulent d. quasi
b. voidable
14.Q.6 Buyer Bob breaches his contract for the sale of goods with Seller Suzie. Suzie still has possession of the goods at the time of the breach. Suzie can refuse to deliver the goods and a.resell the goods and sue Bob for the total contract price. b.either resell the goods or sue, but not both. c.resell the goods and sue for any loss on the sale plus incidental damages less expenses saved. d.resell the goods and sue only for incidental damages.
c.resell the goods and sue for any loss on the sale plus incidental damages less expenses saved.
14.Q.4 A buyer who accepts goods but notifies the seller the goods are non-conforming:
can recover the difference between the goods as promised and as delivered, plus incidental and consequential damages.
14.CYU.8 What is the time limit for commencing an action for breach of contract under the Uniform Commercial Code (UCC)? a. one year b. 90 days c. there is no time limit d. four years
d. four years
11.CYU.7 What is the primary purpose of the Statute of Frauds? a. defining who may testify in a dispute over a contract b. ensuring that all details of a contract are well defined c. preventing fraudulent behavior in the formation of contracts d. requiring written evidence of agreements concerning important transactions
d. requiring written evidence of agreements concerning important transactions
12.Q.1 Mulligan Domestics Co. breached a contract by refusing to accept its order for 60 bolts of fabric from Wellington Mills, although the fabric met the contract specifications. Wellington: a. May choose not to resell the fabric and settle for the difference between the contract price and the market value b. Has at least four remedies under the UCC c. May resell the fabric to someone else and, if it sues mulligan, Wellington Mills will be awarded the full contact price d. would be awarded consequential damages by most courts
a. May choose not to resell the fabric and settle for the difference between the contract price and the market value
10.Q.1 Dick offers to sell Jane his 1955 Thunderbird convertible. Before Jane can accept the offer, lightning strikes the car and it is totally destroyed. Which of the following is true? a. Jan can still accept the offer. She will be entitled to the insurance proceeds b. The offer is terminated by law c. Jan can still accept the offer and John must find a 1955 Thunderbird to sell d. Dick can still revoke his offer so long as he does so before Jan accepts
b. The offer is terminated by law
11.Q.3 Which of the following is NOT a true statement about fraud? a. The defendant made the statement with the intent to induce the plaintiff to enter into the contract. b. The plaintiff must prove that the defendant has knowledge of the falsity of his or her statement. c. The plaintiff must show that although the defendant acted in good faith, the statement was material because the defendant expected the plaintiff to rely on it and enter into the contract. d. It is necessary for the plaintiff to show that he or she has suffered some type of detriment or injury because of his or her reasonable reliance on the defendant's false statement.
c. The plaintiff must show that although the defendant acted in good faith, the statement was material because the defendant expected the plaintiff to rely on it and enter into the contract.
10.CYU.8 Quon and Bert have signed a contract for Bert to mow Quon's grass every week in June, July, and August for a price of $40 per week. They have agreed to all the necessary terms, but Bert has not yet mowed because it is still May. What type of contract do they have? a. void b. unilateral c. executory d. Executed
c. executory
10.8 Which act or statement is a valid offer? a. A typical advertisement c. A completed auction with a reserve c. A price quote d. A detailed advertisement
d. A detailed advertisement
12.5 What does the law require for a personal service contract? a. A special acknowledgement by each party that the contract is a personal satisfaction contract b. The specific standards must be clearly delineated. c. The experts who will be evaluating the work must be listed so the parties are on notice in advance. d. The personal service requirement must be stated.
d. The personal service requirement must be stated.
10.5 What type of acceptance requires an affirmative action for the offeree to accept that offer? a. Browsewrap Agreements b. Offeree's silence in response to an offer c. The typical type of acceptance to an offer d. Unilateral contracts
d. Unilateral contracts
10.Q.4 A seller's form clearly states no warranty is included. The buyer's form states that the seller warrants the goods for one year. In this case: a. no contract can be created. b. the warranty term is an "additional term" that becomes part of the contract in most states. c. the warranty term is a "different term," which in most states becomes part of the contract unless the seller promptly objects. d. the warranty term is a "different term," and the majority of states hold that a contract can be formed but the contradictory terms cancel each other out.
d. the warranty term is a "different term," and the majority of states hold that a contract can be formed but the contradictory terms cancel each other out.
14.Q.10 Implid warranties are those created by the UCC itself, not by any act or statement of the seller a. true b. false
a. true
11.4 Which of these contracts would be enforceable, despite the existence of a mistake? Choose 2 answer choices. a. Christopher agrees to sell his washer and dryer to Ella in "as is" condition. Ella thinks the set is in excellent condition and is willing to take a chance on buying it. Neither works after a few weeks of use. b. Christopher agrees to sell his washer and dryer to Ella. Ella thinks the dryer uses gas instead of electricity, but she is incorrect. c. Christopher agrees to sell his washer and dryer to Ella. He bought them at a yard sale and the sellers told him they were new. Ella believes they are new as well and, as a result, pays a higher price. When Ella encounters problems, a friend shows her parts that are worn. Christopher agrees to sell his washer and dryer to Ella. d. Christopher overhears Ella telling her friend that she is happy she is getting such a great deal on a new washer and dryer, although Christopher knows he has used them for a year, but he does not correct her.
a. Christopher agrees to sell his washer and dryer to Ella in "as is" condition. Ella thinks the set is in excellent condition and is willing to take a chance on buying it. Neither works after a few weeks of use. b. Christopher agrees to sell his washer and dryer to Ella. Ella thinks the dryer uses gas instead of electricity, but she is incorrect.
11.CYU.10 Which of these types of contracts must be in writing under the requirements of the Statute of Frauds? Choose 3 answers. a. contracts for the sales of land b. promises made in consideration of marriage c. collateral promises to pay the debt of another person d. contracts for the sale of goods priced at $1,000 or more
a. contracts for the sales of land b. promises made in consideration of marriage c. collateral promises to pay the debt of another person
11.CYU.3 Which statement is true about the ability of minors to enter into contracts? a. A minor may enter into a contract only if the minor has an adult co-signer. b. A minor may enter into a contract but must ratify it within one year of the date of the contract. c. A minor may enter into any contract an adult can, except for contracts that are expressly prohibited for minors. d. A minor cannot legally enter into contracts.
c. A minor may enter into any contract an adult can, except for contracts that are expressly prohibited for minors.
14.CYU.1 What is the most common way of perfecting a security interest? a. Hiring a lawyer to draft the documents. b. Completing a purchase-money security interest. c. Filing a financing statement. d. Publishing the interest in the classified section of the newspaper.
c. Filing a financing statement.
10.CYU.4 What is the term for a contract agreement in which an offeror promises to pay after the occurrence of a specified act, and the offeree is not required to respond in words? a. open contract b. bilateral contract c. unilateral contract d. executed contract
c. unilateral contract
11.Q.2 A(n) ____ contract is illegal from the the beginning and may not be enforced by either party; a(n) ____ contract is legal but permits on party to escape, if he or she so wishes a. disaffirmed; affirmed b. affirmed; disaffirmed c. void; voidable d. voidable; void
c. void; voidable
11.3 Which mistake is likely to be voidable? a. Unilateral mistake b. A prediction mistake c. Mistakes of Value d. Bilateral mistake
d. Bilateral mistake
10.2 What must a plaintiff show to be awarded a quasi-contract in a lawsuit? a. The defendant was unjustly enriched. b. The defendant agreed to compensate the plaintiff for the benefit received. c. The plaintiff received some benefit. d. The defendant expected to be paid.
a. The defendant was unjustly enriched.
10.Q.10 Revocation is the withdrawal of an offer by the offeror a. True b. False
a. True
10.7 Which of the following is a valid offer? a. Eric offers to buy Arun's house for $775,000 with no contingencies because Eric's lease ends in two months. Arun wants to think about it and six days later has not yet responded. b. Arun tells Eric he will sell one of his houses for $250,000 by the end of the summer. c. Eric offers to buy Arun's house for $290,000. Arun says, "No, but I will sell it to you for $300,000." Eric seems to be upset, so Arun says he will sell it for $290,000. d. Arun distributes flyers at work stating he wants to sell his house, listing the address and the asking price.
a. Eric offers to buy Arun's house for $775,000 with no contingencies because Eric's lease ends in two months. Arun wants to think about it and six days later has not yet responded.
11.7 Which is NOT an exception to the parol evidence rule? a. Jayden wants to present evidence that Jignesh verbally promised he would include the trailer with the boat he sold to Jayden. b. Jayden has evidence that he and Jayden agreed to move back the boat delivery date from the original date in the contract when Jayden discovered a hole and Jignesh agreed to repair it before delivery. c. Jayden wants to present evidence that Jignesh agreed to deliver the boat to Jayden before Memorial Day of next year, but the contract incorrectly states the delivery will take place before Memorial Day 2098. d. Jayden has evidence that Jignesh misrepresented portions of the deal they made and would like to present this evidence to terminate the contract.
a. Jayden wants to present evidence that Jignesh verbally promised he would include the trailer with the boat he sold to Jayden.
12.4 What must a party show to win a substantial performance lawsuit? Choose 2 answer choices. a. The breach was not intentional. b. There were no deviations from the contractual requirements. c. He or she acted in good faith. d. The breach caused no monetary damages.
a. The breach was not intentional. c. He or she acted in good faith.
14.CYU.10 What remedies are available to a buyer when a seller refuses to deliver the goods that are the subject of a contract? Choose 3 answers. a. The buyer may cancel the contract. b. The buyer may buy other goods and recover damages from the seller. c. The buyer may sue to obtain specific performance if the goods are unique or if damages are an inadequate remedy. d. The buyer may cancel all other contracts with this seller on the grounds of anticipatory breach.
a. The buyer may cancel the contract. b. The buyer may buy other goods and recover damages from the seller. c. The buyer may sue to obtain specific performance if the goods are unique or if damages are an inadequate remedy.
14.4 Breeze Manufacturing agrees to purchase goods from Hawkins Inc. In what situation could Breeze reject a shipment of goods from Hawkins under the perfect tender rule? a. The goods do not meet the specifications detailed in the contract. b. If Hawkins Inc. hires a carrier to deliver the goods that was different from the carrier the parties included in the contract. c. If Breeze accepted flawed goods from Hawkins in the past. d. The industry practice is to allow for minor flaws, but Breeze and Hawkins did not specifically agree to that.
a. The goods do not meet the specifications detailed in the contract.
10.CYU.10 How may an offer be terminated? Choose 3 answers. a. The offeree may make a counteroffer. b. A reasonable amount of time has passed. c. A competitor to the offeror can issue a better offer for the same product or service. d. An offeror may terminate an offer by revocation.
a. The offeree may make a counteroffer. b. A reasonable amount of time has passed. d. An offeror may terminate an offer by revocation.
14.CYU.5 Which of the following must a plaintiff prove when suing based on an express warranty for a defective product? Choose 3 answers. a. The seller made a statement of fact to the buyer about the quality or uses of the product. b. The seller breached the warranty. c. The seller knew the buyer would use the product in the manner in which it was used. d. One of the buyer's reasons for the purchase is the product warranty.
a. The seller made a statement of fact to the buyer about the quality or uses of the product. b. The seller breached the warranty. d. One of the buyer's reasons for the purchase is the product warranty.
10.CYU.1 What elements are required for an offer to be effective under the common law? Choose 3 answers. a. The terms of the offer must be reasonably definite so that all parties understand them. b. The offer must be communicated to the offeree. c. The offeror must intend to be bound by the offer. d. The offer must be irrevocable for a set period of time to allow acceptance.
a. The terms of the offer must be reasonably definite so that all parties understand them. b. The offer must be communicated to the offeree. c. The offeror must intend to be bound by the offer.
10.Q.2 Some of the elements of a contract at acceptance, consideration, legality, and capacity a. True b. False
a. True
10.Q.6 When promissory estoppel is used by the courts, it is because there is NOT an enforceable contract present. a. True b. False
a. True
10.Q.9 A promise to do (or not do) something in the future counts as consideration. a. True b. False
a. True
11.Q.1 Travis had too many beers at the baseball game. Ed realized Travis was so intoxicated he wouldn't know what he was doing, so he got Travis to sign a promise to sell his motorcycle to Ed for $50. When Travis gets sober, he may void the contract. a. True b. False
a. True
12.3 In what situation could a party enforce strict performance? Choose 2 answer choices. a. When the requirement is reasonable b. When one of the parties did not act in good faith c. The plaintiff received sufficient benefit and the difference can be compensated with monetary damages d. When the parties specifically agree to it in the contract
a. When the requirement is reasonable d. When the parties specifically agree to it in the contract
12.CYU.4 Manuel contracts to sell a painting that was painted by his deceased grandmother, then has a change of heart and decides to hang it in his own bedroom. He notifies Nadine, the person who had planned to buy it. Can Nadine have the contract enforced? a. Yes, it can be enforced under the equitable remedy of specific performance. b. No, it can't be enforced because Manuel canceled the contract before it was executed. c. Yes, it can be enforced under the theory of quasi-contract because Nadine had relied on Manuel's promise. d. No, it can't be enforced because this is of a personal nature, and Manuel retains the rights to the painting.
a. Yes, it can be enforced under the equitable remedy of specific performance.
10.Q.5 Jennifer has offered to sell her laptop computer for $750 to Jack. She tells Jack that the computer is only six months old but, in fact, it is three years old, and Jennifer wants to unload the lemon. Jack agrees to buy the computer based on Jennifer's representations. This contract is: a. a voidable contract, one that Jack can void. b. a void contract because of the UCC. c. a voidable contract, because it is unilateral d. a void agreement because of the fraud involved.
a. a voidable contract, one that Jack can void.
12.CYU.7 What is the term for the action of a party to a contract who notifies the other party that he or she will not perform his or her duty under a contract? a. anticipatory repudiation b. nullified obligations c. suspension of performance d. retractment
a. anticipatory repudiation
12.CYU.6 What remedies are available after an anticipatory repudiation? Choose 3 answers. a. cover b. requiring assurance c. canceling all other contracts with the breaching party d. suspending performance
a. cover b. requiring assurance d. suspending performance
14.CYU.3 A security interest has attached when the creditor: a. has possession or control of the collateral. b. has described the collateral in writing. c. receives the first installment of loan payments. d. and the debtor have reached an agreement.
a. has possession or control of the collateral.
11.CYU.5 A contract for a purpose that causes the parties to violate a law is: a. illegal and void. b. illegal and voidable. c. illegal and dischargeable. d. enforceable as a quasi-contract.
a. illegal and void.
12.Q.6 The goal of expectation interest is to a. to put the non-breaching party in the position it would have been in if the contract hadn't been breached. b. serve as a penalty for breaching a contract c. award damages under the UCC when the sale of goods is the subject of the contract d. put the non-breaching party in the position it would have been in had the contract never been formed
a. to put the non-breaching party in the position it would have been in if the contract hadn't been breached.
11.Q.6 Amanda, a recent university graduate, needed a car to get to her new job. To help Amanda secure a loan for the car, Ted, a friend, agreed to pay the loan should Amanda default. Ted's promise to pay the loan is a collateral promise. His promise must be in writing to be enforceable. a. true b. false
a. true
10.4 In general, certain terms must be included in contracts to satisfy the requirement of definiteness. What are the exceptions to this rule? Choose 2 answer choices. a. Courts can rewrite contracts even if the intent is vague. b. Courts can complete a contract to supply some missing items. c. Sales contracts under the UCC d. If the contract is in writing, not all terms are required to be included.
b. Courts can complete a contract to supply some missing items. c. Sales contracts under the UCC
14.7 In which of these situations does an express warranty exist? Choose 2 answer choices. a. An employee at Crane Outdoor Shop promises Korinne that their outdoor furniture does not fade in the sun. Korrine states she wants to buy the furniture for indoor use, and it will not be in the sun. b. Crane Outdoor Shop shows products on the showroom floor as examples of what they sell, but all purchases are made online and another sample of that item is delivered to the customer's home. c. Crane Outdoor Shop advertises they have the best outdoor furniture in the state. d. Crane Outdoor Shop sells only online. The product postings include detailed descriptions of the features, but no pictures.
b. Crane Outdoor Shop shows products on the showroom floor as examples of what they sell, but all purchases are made online and another sample of that item is delivered to the customer's home. d. Crane Outdoor Shop sells only online. The product postings include detailed descriptions of the features, but no pictures.
11.8 What evidence outside of the written contract is a party allowed to present? Choose 2 answer choices. a. Evidence showing an agreement that is different from the contract that the parties agreed to before the contract was signed b. Evidence showing a change to the contract after it is signed c. Verbal negotiations leading to the signing of the contract d. Evidence to prove agreement on an essential element of the contract
b. Evidence showing a change to the contract after it is signed d. Evidence to prove agreement on an essential element of the contract
10.6 Lilly hired Harris Lawn Service to cut her grass one summer, and paid through automatic charges to her credit card. After taking three months off for winter weather, Harris staff cut Lilly's grass for four weeks in a row before charging the fees on Lilly's credit card. Lilly protested the charges, stating she did not hire the company to cut grass for the second summer. Harris sues Lilly. What law applies? Choose 2 answer choices. a. Lilly's silence is not acceptance and Harris's service in the spring is considered a gift to her. b. Lilly's silence is acceptance because of the parties' past dealings. c. Lilly's silence is not acceptance in this case because the offeree must affirmatively accept the terms of the offer in full and communicate that acceptance to the offeror. d. Lilly's silence is acceptance because the offeree accepted the benefit offered.
b. Lilly's silence is acceptance because of the parties' past dealings. d. Lilly's silence is acceptance because the offeree accepted the benefit offered.
12.1 How is substantial performance involved with the classification of material breaches versus immaterial breaches? a. Substantial performance involves a material breach. b. Substantial performance involves an immaterial breach. c. Anticipatory repudiation determines the status of substantial performance. d. Substantial performance can occur with either a material or an immaterial breach.
b. Substantial performance involves an immaterial breach.
14.1 In what situations does the UCC overrule common law? a. The UCC applies to contracts that sell services. b. The UCC applies to contracts that sell goods. c. The UCC governs situations in which common law is silent. d. The UCC applies to mixed contracts if the predominant purpose of the deal is to sell services.
b. The UCC applies to contracts that sell goods.
11.CYU.9 What is the test for whether a contract is governed by the Statute of Frauds because of the one-year rule? a. The contract must be unlikely to be performable in less than one year. b. The contract must be objectively impossible to perform within one year. c. The contract start date must be more than one year from the date of signing. d. The contract must be able to be performed in less than one
b. The contract must be objectively impossible to perform within one year.
10.CYU.6 What factors make an agreement enforceable under the principle of quasi-contract? Choose 2 answers. a. The courts determine that an enforceable contract exists. b. The enriched party knows about the benefit and keeps it. c. The enriching party is negligent. d. One party is being enriched at the expense of the other.
b. The enriched party knows about the benefit and keeps it. d. One party is being enriched at the expense of the other.
10.CYU.5 How may a revocable offer effectively be revoked? Choose 2 answers. a. The offeror may convert the offer to an option contract. b. The offeror may take an action that contradicts the offer and make that known to the offeree. c. The offeree may reject the offer with a clear expression. d. The offeror may withdraw the offer with a clear expression.
b. The offeror may take an action that contradicts the offer and make that known to the offeree. d. The offeror may withdraw the offer with a clear
11.6 What is the result if parties agree to a contract orally, but it is a contract that must be in writing under the statute of frauds? Choose 2 answer choices. a. The contract is illegal. b. The parties can complete the contract. c. The contract is voidable. d. The contract is void.
b. The parties can complete the contract. c. The contract is voidable.
14.5 What rights does the perfect tender rule give buyers of goods? Choose 2 answer choices. a. The right to reject goods that conform to the contract specifications b. The right to accept delivery of all of the goods c. The right to reject the seller's goods if the goods are not exactly as described in the contract d. The right to reject goods if they are not delivered as agreed
b. The right to accept delivery of all of the goods c. The right to reject the seller's goods if the goods are not exactly as described in the contract
12.CYU.5 LaVon contracts with Nathan for Nathan to sing at her comedy club every Friday night in July. The first Friday, the crowd loved Nathan. The second Friday, they booed him. The next week, Nathan got a better offer, so he hired his twin brother Ethan to fill in for him at LaVon's club. Can LaVon compel Nathan to perform? a. No, she can't compel him because Nathan has gotten a better offer. b. Yes, she can compel him under the theory of quasi-contract because LaVon had relied on Nathan's promise and she has printed posters and advertisements. c. Yes, she can compel him under the equitable remedy of specific performance. d. No, she can't compel him because Ethan is an acceptable substitute for Nathan.
b. Yes, she can compel him under the equitable remedy of specific performance.
14.CYU.9 Can the parties to a contract agree to change the time limit for commencing an action for breach of contract under the Uniform Commercial Code (UCC)? a. Yes, but the maximum time allowed is ten years. b. Yes, they may set the time limit to any time between one year and four years. c. Yes, they may set the time limit to any time they agree upon. d. No, they must abide by the Statute of Limitations time limit of four years.
b. Yes, they may set the time limit to any time between one year and four years.
12.Q.5 Abdulla hired Granite Construction to build an addition onto his home. Granite Construction dug the foundation but then abandoned the project. Granite Construction is entitled to receive the full contract price minus the value of the defects. a. true b. false
b. false
12.CYU.10 What is the implied duty in every contract that each party will deal fairly with the other? a. reasonable person standard b. good faith c. strict performance d. golden rule
b. good faith
11.Q.7 Derek and Abyan were discussing business over lunch when they agreed on the sale of a five-acre parcel of land. Since neither of them had any paper with them, Derek wrote the following on a napkin: "Abyan agrees to purchase from Derek a 5-acre parcel located at the local address of 123 105th Street, St. Joseph, Minnesota, U.S.A. for the price of $4,500 per acre. Transfer of title, payment, and possession to take place on May 1, 2011." Abyan signed the napkin. On May 1, 2011, Derek was ready to close the deal and transfer title but Abyan refused to pay the purchase price. If Derek sues Abyan for the price of the land, the most likely result will be: a. Derek will win because the Statute of Frauds does not apply to this situation b. Abyan will win because Derek did not sign the writing c. Derek will win because the writing is sufficient under the Statute of Frauds d. Abyan will win because the writing is not sufficient under the Statute of Frauds
c. Derek will win because the writing is sufficient under the Statute of Frauds
10.CYU.2 What conditions must be met for an offer to be legally accepted? Choose 2 answers. a. The offer must be accepted within 24 hours of communication. b. Acceptance must be communicated in words, either written or oral. c. It may only be accepted by the intended offeree or the offeree's agent. d. Acceptance must be unequivocal with no requests for changes in the offer.
c. It may only be accepted by the intended offeree or the offeree's agent.
12.6 What is the evaluation standard for a personal satisfaction contract? Choose 2 answer choices. a. Expert standards b. Accepted standards for the area or region c. Subjective personal taste d. Objective, reasonable person standard
c. Subjective personal taste d. Objective, reasonable person standard
14.CYU.4 Which of the following has the highest priority in the distribution of assets when two or more creditors have an interest in the same collateral? a. The creditor who filed first. b. The creditor with the largest value secured interest. c. The creditor whose interest was perfected first. d. The creditor whose interest attached first.
c. The creditor whose interest was perfected first.
12.2 What are the legal differences between a material breach and an immaterial breach of contract? Choose 2 answer choices. a. Whether a party has announced repudiation of the contract b. The dollar amount of damages c. The level of the performance of the contractual obligations d. Whether the court will discharge the contract
c. The level of the performance of the contractual obligations d. Whether the court will discharge the contract
10.CYU.7 Sal has ordered 100 pounds of shrimp for his restaurant from Sam every Friday for 5 years and has always paid that week's market price. One Friday, Sal decides to take a vacation but doesn't tell Sam. Sam claims they have a contract, even though it was never written down. What kind of contract do they have? a. quasi b. implied-in-law c. implied-in-fact d. Express
c. implied-in-fact
12.CYU.9 What is the standard to which most personal satisfaction contracts must adhere? Choose 2 answers. a. satisfaction of the performing party (seller) b. satisfaction of an expert third party c. satisfaction of the receiving party (buyer) d. satisfaction of a reasonable person
c. satisfaction of the receiving party (buyer) d. satisfaction of a reasonable person
14.Q.3 Which of the following parties can defeat a perfected security interest? a. A "buyer in ordinary course of business." b. A buyer of consumer goods if the buyer is not aware of the security interest gives value for the goods, will continue to use the goods as consumer goods, and the secured party has not filed a financing statement. c. A buyer who purchases chattel paper or an instrument in the ordinary course of business, and then takes possession. d. All of the above are correct.
d) All of the above are correct.
11.Q.4 Barb has been a children's day care provider for several years in the small town of Sallton. She has decided to give it all up and move to the big city for excitement and adventure. She sells her business to Ken, agreeing not to open a competing business within five miles of Sallton for a period of nine months. After five months of the big city life, Barb is broke and moves back to Sallton. She opens a small day care business. Ken sues on the noncompete clause. What is the most likely result? a. Barb wins. The agreement is not reasonable as to time b. Barb wins. The agreement is not enforceable because it is not ancillary to legitimate bargain c. Barb wins. The agreement is denying her the right to do the only ting she knows how to do d. Ken wins. The agreement is enforceable
d. Ken wins. The agreement is enforceable
14.8 Linda wants to buy some equipment and needs computer software to use the equipment. Linda asks the salesperson if the software is Mac-compatible because she owns only one computer and it is a Macbook. The salesperson states that the computer software is Mac-compatible and many of his customers use the software on their Apple computers. The software box offers no information regarding operating system requirements. When Linda arrives home and opens the package, she discovers the software is not Mac-compatible. The store states it will not accept returns of opened software, and the salesperson says he was relying on what other customers told him. What will be the result if Linda files a lawsuit? a. Linda wins under warranties implied from prior dealings or trade custom. b. The manufacturer is liable for any damages because it did not include the operating system information on the software packaging. c. The store wins because the salesperson was not an expert on software and merely relied on feedback from other customers. d. Linda wins under implied warranty of fitness for a particular purpose.
d. Linda wins under implied warranty of fitness for a particular purpose.
10.9 Which situation would be considered sufficient consideration for a contract to exist? a, Alice's grandson quit smoking, so Alice promises to give him $5,000. b. Alice promises to give her granddaughter $10,000. c. Bethany is remodeling a kitchen for Tonya. Bethany tells Tonya she will finish the work within a reasonable time if Tonya pays her a bonus. d. Pam agrees to pay Derek $500 if he does not sit next to her in class anymore.
d. Pam agrees to pay Derek $500 if he does not sit next to her in class anymore.
12.7 Fred and Wilma enter into a contract for horse riding lessons. Fred accidentally types the price for lessons to be $4.00 each instead of $44.00 each. Wilma wishes to enforce the contract at $4.00 per lesson. Which remedy would be most effective? a. Injunction b. Rescission c. Specific performance d. Reformation
d. Reformation